NASDAQ$FAST

Fastenal Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Fastenal's financial performance was influenced by the COVID-19 pandemic, with surge sales of PPE offsetting declines in traditional business, resulting in a net sales increase.

Fastenal reported a 10.3% increase in net sales for Q2 2020 compared to Q2 2019, driven by surge sales of PPE which offset declines in traditional business. Diluted net earnings per share increased by 16.7% to $0.42. The company experienced shifts in product mix and end market performance due to pandemic-related events.

  • Net sales increased by 10.3% due to surge sales of PPE offsetting declines in traditional business.
  • Diluted net earnings per share increased by 16.7% to $0.42.
  • Gross profit margin declined by 240 basis points to 44.5% due to product mix changes and lower safety product margins.
  • Manufacturing and non-residential construction end markets were down 9.4% and 10.3%, respectively, while the government business was up 266.7%.

Headline financials

Total Revenue

$1.51B

Previous: $1.37B+10.3%
EPS (adj)

$0.42

Previous: $0.36+16.7%
Non-Residential Const.

-$10.30

No prior period
Capital Expenditures

-$90M

Previous: -$123M+26.9%
Free Cash Flow

$149M

Previous: $81.5M+82.7%
Net Income

$239M

Previous: $205M+16.8%
Operating Income

$316M

Previous: $275M+14.9%
Gross Profit

$672M

Previous: $641M+4.7%
Cash & Equivalents

$202M

Previous: $175M+15.1%
Total Assets

$4.09B

Previous: $3.76B+8.8%
Stock-Based Comp

$1.3M

Previous: $1.3M+0.0%

Revenue & EPS history

Fastenal · Revenue · Quarterly

$1.51B

Q2 2020+10.3%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Fastenal · $461M total across 1 segment · Q1 2021

  • Fastener Products
    $461M+2.3%

Forward guidance

The company expects surge-type PPE orders to decline as they enter the third quarter of 2020. Whether our traditional business continues to improve in the third quarter from June levels of activity, and at what pace, remains difficult to project.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.0%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.0%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+14.2%

Q3 2019

Best reaction

-9.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-6.9%-12.2%
Q4 2025-2.5%+0.3%+5.6%
Q3 2025-7.6%-7.3%-10.5%
Q2 2025-1.1%+1.4%-3.6%
Q1 2025+6.4%+6.1%+3.7%
Q4 2024+1.8%+1.1%+0.0%
Q3 2024+9.6%+11.1%+19.1%
Q2 2024+5.7%+9.1%+3.5%
Q1 2024-5.7%-8.0%-9.2%
Q4 2023+9.4%+9.7%+10.8%
Q3 2023+7.3%+7.2%+7.1%
Q2 2023-2.1%-3.3%-2.2%
Q1 2023+1.4%+2.5%+4.2%
Q4 2022+3.1%+4.3%+12.4%
Q3 2022-3.9%+4.0%+13.4%
Q2 2022-5.3%-4.2%+11.6%
Q1 2022-2.9%-4.7%-8.7%
Q4 2021-3.8%-1.6%-12.3%
Q3 2021+2.7%+6.7%+13.5%
Q2 2021-1.5%-0.8%+2.4%
Q1 2021-1.3%-0.3%+5.0%
Q4 2020-4.5%-4.5%-6.3%
Q3 2020-5.6%-5.0%-2.7%
Q2 2020+1.5%+1.9%+10.7%
Q1 2020+7.1%+11.3%+19.9%
Q4 2019-4.0%-3.7%+2.7%
Q3 2019+14.2%+14.8%+19.5%
Q2 2019-1.0%+0.1%-4.8%
Q1 2019+6.9%+6.6%+0.7%
Q4 2018+9.7%+9.2%+16.4%
Q3 2018-7.9%-5.3%-1.6%
Q2 2018+11.7%+11.9%+16.5%
Q1 2018-6.8%-6.9%-4.9%
Q4 2017-3.9%-2.0%-1.2%
Q3 2017+2.4%+5.3%+6.1%
Q2 2017-1.0%-2.5%-2.2%
Q1 2017-9.5%-9.0%-11.1%
Q4 2016+4.8%+5.6%+5.1%
Q3 2016-7.3%-9.0%+6.6%
Q2 2016-4.5%-4.2%-4.2%
Q1 2016-2.4%
Q4 2015-6.3%
Q3 2015-2.5%
Q2 2015-3.1%
Q1 2015+3.3%
Q4 2014+0.7%
Q3 2014-7.7%
Q2 2014-5.5%
Q1 2014-0.6%
Q4 2013-3.2%
Q3 2013-4.1%
Q2 2013-1.1%
Q1 2013-4.1%
Q4 2012+3.4%
Q3 2012+7.1%
Q2 2012+8.6%
Q1 2012+1.1%
Q4 2011-0.9%
Q3 2011+6.9%
Q2 2011+0.2%
Q1 2011+2.1%
Q4 2010+1.4%
Q3 2010+0.9%
Q2 2010+2.2%
Q1 2009-2.8%
Q1 2010+0.2%
Q4 2009+0.8%
Q3 2009-2.6%
Q2 2009+0.7%

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